New Delhi: In a major step toward strengthening India’s steel sector, Union Minister of Steel H.D. Kumaraswamy on Tuesday launched the third round of the Production Linked Incentive (PLI) Scheme for speciality steel, aimed at attracting fresh investment, enhancing domestic production, and reducing import dependence in critical sectors.
The latest round, titled ‘PLI 1.2 for Speciality Steel,’ was launched at a function held in New Delhi. The scheme is part of the Government of India’s broader initiative to make India a global hub for high-value and advanced-grade steel production.
A Push Toward Self-Reliance in Steel Manufacturing
The PLI Scheme for Speciality Steel, approved by the Union Cabinet in July 2021 with an outlay of ₹6,322 crore, is designed to encourage domestic manufacturing of niche steel products that currently rely on imports. These include critical segments like defence, power, aerospace, infrastructure, and other high-technology applications.
Launching the third round, Minister Kumaraswamy emphasized the importance of expanding India’s speciality steel capacity to meet the growing domestic and international demand. He stated that the initiative is an important milestone toward achieving the government’s vision of ‘Atmanirbhar Bharat’ (self-reliant India) and increasing the nation’s share in global steel exports.
Strong Response in Previous Rounds
Under the first two rounds of the PLI scheme, the steel sector witnessed a strong response from domestic players, attracting committed investments worth ₹43,874 crore. Out of this, ₹22,973 crore has already been invested, resulting in the creation of over 13,000 direct and indirect jobs.
These investments are expected to generate capacity additions of high-grade steel, reduce the need for imports, and enhance India’s competitiveness in global steel markets.
Expanded Coverage and Incentives
The third round of the PLI scheme covers 22 product sub-categories, including super alloys, cold-rolled grain-oriented (CRGO) steel, alloy steel forgings, stainless steel (long and flat), titanium alloys, and coated steels.
The incentive rates under the scheme range from 4% to 15%, applicable for a period of five years starting from FY2025–26, with disbursal beginning in the next fiscal year. To align with evolving market conditions, the base year for pricing has been updated to FY2024–25.
Driving the Future of India’s Steel Industry
With the launch of PLI 1.2, the government expects a surge in new investments and innovations in speciality steel manufacturing, contributing to sustainable industrial growth and enhanced export potential.
The initiative is seen as a key enabler in India’s transition from a net steel importer to a global supplier of value-added, high-performance steel products, reinforcing the country’s role in the international steel value chain.
